Shares in Sligro Food Group N.V. show a positive technical chart pattern over the medium term. The timing to jump back on the rising trend seems good.
Strengths
● The group usually releases upbeat results with huge surprise rates.
● The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.67 for the 2021 fiscal year.
● Analysts have consistently raised their revenue expectations for the company, which provides good prospects for the current and next years in terms of revenue growth.
● The stock is in a well-established, long-term rising trend above the technical support level at 17.2 EUR
Weaknesses
● The share is close to its long-term resistance in weekly data. Therefore, the potential should be limited. However, a further bullish movement when crossing this resistance will be a positive signal.
● The company has insufficient levels of profitability.
● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 65 times its estimated earnings per share for the ongoing year.
● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.
● For the last few months, analysts have been revising downwards their earnings forecast.
● For the last 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.
● The appreciation potential seems limited due to the average target prices set by the analysts covering the stock.
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Sligro Food Group N.V. specializes in food distribution. Net sales break down by activity as follows:
- delivery of food products (64.3%): to restaurants, caterers, companies, stores, hospitals, retirement homes, schools, etc.;
- wholesale distribution (35.7%): activity ensured through 63 cash & carry stores located in the Netherlands (51) and Belgium (12). In addition, the group is developing a non-food products distribution business for catering professionals (kitchen equipment and utensils, culinary accessories, household products, cookbooks, etc.).
Net sales are distributed geographically as follows: the Netherlands (85%) and Belgium (15%).
SLIGRO FOOD GROUP N.V. 
